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Trump increases visa fees as Nvidia invests in OpenAI
US equity markets closed higher despite the announcement of a new fee on H-1B visas introduced by US President Donald Trump. While higher application costs imply a headwind for US companies that recruit highly skilled foreign workers, the overall impact is likely to be contained. Meanwhile, Nvidia announced a substantial investment in OpenAI.
Mixed performance across large technology names following the announcement of higher H-1B visa fees.
Nvidia announced a US$100 billion investment in OpenAI, reinforcing its technology leadership and growth ambitions.
Gold set new all-time highs as the geopolitical risk premium persisted.
Mixed tech after new H-1B visa fee announced
US President Donald Trump announced a new fee on H-1B visa applications. The proposed measure includes a $100,000 fee per application, a move that could significantly impact US technology firms and hiring practices. Previously, H-1B visa fees ranged from US$2,000 to US$5,000, so the increase is relevant. Notably, the measure applies to new applicants rather than renewals or existing visa-holders. The U.S. government clarified that the charge is a one-time fee, rather than a recurring annual payment.
US companies—particularly in the technology sector—employ H-1B workers in roles requiring technical and specialised skills that are not adequately supplied by the domestic labour market. These roles typically require at least a bachelor’s degree and are concentrated in science and technology fields, among others.
The announcement generated mild nervousness, especially among large tech firms that rely on significant numbers of H-1B professionals. Companies with a consistent H-1B hiring footprint include IBM, Accenture and Deloitte (CNBC.com). By the market close, selected mega-cap tech shares were softer: Amazon −1.66%, Alphabet −0.88%, Meta −1.70% and Microsoft −0.67%. In contrast, Nvidia rose 3.93%, Apple 4.32% and Tesla 1.91%.
Nvidia announces plans to invest in OpenAI
Nvidia Corporation announced an investment of US$100 billion in OpenAI. The investment is intended primarily for the build-out of data centres, with additional collaboration envisaged in microprocessor production and broader AI-related infrastructure.
The decision follows Nvidia’s recent large investment in Intel. Nvidia’s share price closed up 3.93%, reflecting investor confidence in the company’s capital-allocation strategy. At present, Nvidia’s stock-market valuation is roughly US$4.46 trillion.
Nvidia’s more active approach to strategic investment contrasts with the comparatively passive stance seen in prior quarters, when cash flows were directed more towards capital returns (investment in buybacks or dividend payments) than towards growth initiatives.
Gold hits new all-time highs
Gold reached a fresh all-time high of around US$3,740 per ounce. Key drivers include expectations of further Fed rate cuts and firmer demand for safe-haven assets. Although fears of a global slowdown have begun to recede, geopolitical risks remain elevated—notably tensions between Russia and NATO, which could escalate if there were any direct confrontation.
Key economic events this week
Monday
- China: PBoC Prime Lending Rate
Tuesday
- Germany: PMI Manufacturing
- UK: PMI Manufacturing
- US: Fed Chair Powell Speech
Wednesday
- Germany: Ifo Business Climate
- US: EIA Crude Oil Inventories
Thursday
- Switzerland: Monetary Policy Decision
- Germany: Consumer Confidence
- US: Durable Goods Orders
- US: GDP Growth Rate (QoQ) – Final
- US: Existing Home Sales
- Mexico: Monetary Policy Decision
Friday
- US: Core PCE Price Index
- US: Personal Income
- US: Personal Spending
